Free article section

You are reading a Free article. Apply for a subscription to access all the valuable information on the website Sports Law & Taxation

NETHERLANDS: Conflicting court cases on application of Article 17 to basic salary

Netherlands Court of Appeals have decided in three cases on the application of tax treaty provisions such as Article 17 of the OECD Model Convention on the basic salaries of professional sportsmen. The first two decision were taken by the Court of Appeal of ?s-Hertogenbosch, and concerned a professional cyclist (decision of 10 June 2003, No. 01/03822) and a professional football player (apparently a player of Feyenoord, decision of 5 November 2003, No. 02/04607). The Court held that applicable tax treaty provisions that were similar to Article 17 of the OECD Model Convention were indeed applicable to the basic salary of the professional sportsmen. The strongest argument appears to have been reference to paragraphs 1 and 2 of the 1963 OECD Commentary and paragraph 8 of the 1992 OECD Commentary. The Netherlands tax authorities went into appeal against both these decisions. Almost one year later the Court of Appeal of Amsterdam also had to decide whether tax treaty provisions such as Article 17 of the OECD Model Convention were applicable to the basic salary of a professional sportsman (in this case a professional ice-skater, decision of 6 October 2004, No. 03/4112). The Amsterdam Court of Appeal held that these tax treaty provisions were not applicable to the basic salary. The main argument now appears to have been paragraph 9 of the 1992 OECD Commentary. In this case the taxpayer went into appeal. The Netherlands Supreme Court will thus have the opportunity to decide this quite fundamental question. We are considering preparing and publishing - in an international tax journal - a comparative study on the application of tax treaties to the basic salary in the various countries. We would be very interested to learn whether there has been case law in your country on this issue. Please send any reaction you may have to This email address is being protected from spambots. You need JavaScript enabled to view it..
The Journal

Global Sports Law and Taxation Reports feature: articles; comparative surveys; commentaries on topical sports legal and tax issues and documentation.

The unique feature of Global Sports Law and Taxation Reports is that this Journal combines for the first time up to-date valuable and must-have information on the legal and tax aspects of sport and their interrelationships.

TheĀ Editors

The editors of  the Journal Sports Law & Taxation are Professor Ian Blackshaw and Dr Rijkele Betten, with specialist contributions from the world's leading practitioners and academics in the sports law and taxation fields.

The Editors

Managing editor
Dr. Rijkele Betten

Consulting editor
Prof. Dr. Ian S. Blackshaw

Editorial board

Prof. Guglielmo Maisto
Maisto e Associati, Milano

Dr. Dick Molenaar
All Arts Tax Advisors, Rotterdam

 

Mr. Kevin Offer
Hardwick & Morris LLP, London

Mr. Mario Tenore
Maisto e Associati, Milano

Address

Nolot BV
St. Jorisstraat 11
5211 HA  's-Hertogenosch
This email address is being protected from spambots. You need JavaScript enabled to view it.